Where Does $100 to EDESIA go?

EDESIA is a 501 (c) (3) based in North Kingston, Rhode Island that produces high quality ready-to-use food under a license from Nutriset (a French company whose focus is on producing food to prevent and reverse malnutrition).  EDESIA manufactures these food packets and sells them to organizations who distribute the products in the developing world.  Hence, the primary source of revenue is from the sale of these products (primarily to other non-profits).

In 2017, EDESIA reported $40 million in revenue, $37 million of which came from product sales. The remaining revenue came from government grants and contributions.

Expenses totaled $34 million (not including $2 million in depreciation) and include:

• $26 million (65% of revenue):  Raw Materials/Packets/Product Testing, Shipping
• $  4.5 million (11% of revenue):  Compensation
• $  2.5 million (6% of revenue):  Office-related expenses
• $  1.0 million (3% of revenue):  Fees for Services, Interest, Travel, Miscellaneous

The largest expense (65% of revenue) was the $26 million for raw materials/packets, product testing, and shipping followed by the $4.5 million in compensation for the 79 employees (an average of $57,600 per employee). 7 employees were compensated more than $100,000:

• $189,129:  Ronald J Yanku, VP, Factory Director
• $175,557:  John Bucci, Assistant Treasurer, CFO
• $158,712:  Maria Kasparian, Executive Director
• $158,590:  Brian Dugas, IT Director
• $133,571:  Tom Stehl, Deputy Director
• $114,001:  Michael Maccarone, Production Manager
• $103,578:  Kevin O’Brien, Senior Procurement Manager

As illustrated above, 6 of the 7 most highly compensated employees are male while 1 is a female.

Because the organization spent less than they raised, the net fund assets grew from $14.1 million at the beginning of the year to $17.7 million at year-end.

Using the above information, $100 in revenue was spent as follows:

 $100:  Revenue

-$ 65:  Raw materials, packets, product testing, shipping

-$ 11:  Compensation

-$  6:  Office-related expenses

-$  3:  Miscellaneous expenses

-$ 85:  Total Expenses

$ 15:  To Fund Balance

As illustrated above, revenue was primarily spent on making the food products, testing, and shipping them, compensation for the 79 employees, and the expenses of running the office.

The bottom line is that EDESIA does not rely on donations or the government for funding since most revenue comes from the sale of the packets.  All of the costs (i.e. raw materials, compensation, office-related expenses and more) are covered by the revenue generated from sales, which is commendable.  No first class or charter travel, travel for companions, social club dues and/or initiation fees, tax indemnification or gross up payments are reported.  The most highly compensated employees are not excessively compensated although the one female (who is running the organization) received less compensation than two of the male employees. Given that 47% of the workforce is female, it is concerning that 6 of the 7 most highly compensated employees are male.

To read the IRS Form 990 (2017), click here.